Category: Fiat Currency
The analysis published under this category are as follows.
Friday, May 23, 2014
Money and Growth / Stock-Markets / Fiat Currency
By: Alasdair_Macleod
The most common of all misconceptions today is that a weakening currency is fundamental to a healthy economy, or put another way, a strong currency is economically destructive. For decades this has been the fundamental belief of mainstream economists and the mainspring behind government policy. Even Switzerland, widely regarded as the leading exponent of non-interventionism, intervenes to keep the franc from rising against the euro.
Read full article... Read full article...
Wednesday, May 21, 2014
Fractional-Reserve Banking: From Goldsmiths To Hedge Funds To…Chaos / Stock-Markets / Fiat Currency
By: John_Rubino
Banking didn’t start out as a reckless, parasitical plaything of a moneyed and politically-connected aristocracy. In the beginning, in fact, bankers weren’t even bankers. They were jewelers and goldsmiths who had to maintain their inventory with vaults, guards etc., and offered storage services to others with valuables to protect. So the original banks were, in effect, very safe warehouses.
Read full article... Read full article...
Tuesday, May 20, 2014
Ink + Paper Doesn't Equal Value: Prechter on Fiat Money / Currencies / Fiat Currency
By: EWI
My dad will turn 84 this year. When he was born, you could walk into a Federal Reserve Bank or the Treasury and redeem your paper money for gold. It actually said you could on every piece of U.S. paper currency:
"Redeemable in gold on demand at the United States Treasury, or in Gold or lawful money at any Federal Reserve Bank."
You can't do that today, which helps explain why my dad is so grumpy.
Read full article... Read full article...
Friday, April 04, 2014
Ukraine Preface, the Emerging Dynamics Of Petro-Yuan Standard / Currencies / Fiat Currency
By: Jim_Willie_CB
The shocks will be many as the USDollar struggles and falls off the global financial stage in full view. The desperate maneuvers like in Syria and Ukraine should be seen as last ditch efforts to save a dying system. For two decades the USDollar has been defended by military means. Worse, for 50 years the USGovt has been a hidden nazi enclave of wicked fascists who have hidden behind their overt disdain for communism, with Kissinger the flag bearer, with Brzezinski the ideologue, with Papa Bush the executor, with narcotics and genetics and gold thefts their principal agenda. The official US support of fascist regimes includes a list of nations as long as your arm. Since 2008 when the Lehman kill was executed in order to rescue Goldman Sachs, when Fannie Mae was hidden under the USGovt roof to prevent its $trillion fraud from being exposed, and when AIG was tucked in the USFed basement closet for ample monetized rescues to patch the derivative black holes, the Anglo-American banking system has indeed been going through trials and tribulations, leading to its death throes. The climax of the banking system death process is upon us finally, the fibrillations of sudden illiquidity against the backdrop of relentless unforgiving insolvency so evident to those with eyes that function.
Tuesday, April 01, 2014
The Clock Is Ticking on This Massive Currency Shift / Currencies / Fiat Currency
By: Money_Morning
Shah Gilani writes: Last week I was asked by a Wall Street Insights & Indictments reader about a new challenge to the U.S. role in the global economy that few are considering.
It's a dominant role we've held since the latter part of World War II, and for 70 years it's gone largely unchallenged.
Until now.
Read full article... Read full article...
Saturday, March 22, 2014
The Euro Is Not Overvalued Nor Is Any Other Currency / Currencies / Fiat Currency
By: MISES
Frank Hollenbeck writes: A common argument for dumping the Euro is that it is overvalued, and that the ECB (European Central Bank) is unwilling to correct this so-called “problem.” This overvaluation is regularly cited as being over 10 percent against the dollar. The Swiss central bank surrendered control of its money supply by fixing its currency at 1.2 against the Euro essentially on the notion that its currency was “overvalued.” Advocates of a Euro breakup consider that a country with its own currency can then follow an independent monetary policy ensuring a competitive exchange rate. Never mind that neither the USA nor Great Britain have improved by following aggressive monetary policies that have depreciated their currencies. Such policies have also forced other countries, such as Brazil, to retaliate. As Mises foresaw,
Friday, February 28, 2014
Legal Tender, Gold, Silver and Alternative Currency / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
History does not repeat; it rhymes.Current stability comes from confidence and force. We've all heard that cliché over and over. But to rhyme is to the use any words you choose. We can rhyme in paper or digits, but it is all backed by nothing.
There is a not-so-subtle difference between currency and legal tender. Legal tender implies both force and control. And it's worthwhile to explore how far history can be re-expressed through technology.
Read full article... Read full article...
Thursday, February 27, 2014
Bulgaria’s Currency Board versus Ukraine’s Chaos / Currencies / Fiat Currency
By: Steve_H_Hanke
When Communism inevitably and finally collapsed, Bulgaria’s economy was a basket case – behind almost all other communist basket cases, including Ukraine’s. Indeed, Bulgaria defaulted on its debt in 1990. By February 1991, Bulgaria had broken out in a bout of hyperinflation, with the inflation rate at 123% per month. And in February 1997, Bulgaria experienced the agonies of hyperinflation again, with the inflation rate reaching 242% per month.
Read full article... Read full article...
Tuesday, February 25, 2014
Stay Ahead of This (Massive) Currency Shift / Currencies / Fiat Currency
By: Money_Morning
Peter Krauth writes: China's political and economic presence surges daily. Lockstep with that surge is the growing significance of its currency.
Along with China's emergence as the world's second-largest economy, its yuan recently displaced the euro and became the second-most used currency for international trade.
Read full article... Read full article...
Friday, February 21, 2014
All Currencies Are an Inverse Pyramid Based on The Dollar / Currencies / Fiat Currency
By: Alasdair_Macleod
When US money supply measured by M2 stood at $11 trillion in December 2013, I calculate that total broad money of the next largest 50 countries ranked by GDP amounted to the equivalent of a further US$67 trillion at current exchange rates. And that's only on-balance sheet: we must add in global shadow banking, estimated by the Financial Stability Board to have been an extra $67 trillion in 2011, probably about $75 trillion today, given its recent rapid growth in China. So when we look at US broad money supply, we should be aware there is a further mountain of money thirteen times as big ultimately based on the dollar.
Read full article... Read full article...
Friday, February 21, 2014
Currency Wars the Great Destabilizer / Currencies / Fiat Currency
By: Steve_H_Hanke
Dr. Karl Schiller, West Germany’s Economics Minister between 1966 and 1972, pithily pronounced that: “Stability is not everything, but without stability, everything is nothing.” I agree. In the economic sphere, instability is usually a “bad”, not a “good”.
The world’s great destabilizer is the United States. How could this be? In the post-World War II era, the world has been on a U.S. dollar standard. Accordingly, the U.S. Federal Reserve is the de facto central banker for the world.
Friday, February 21, 2014
How China Fooled the World with Fiat / Currencies / Fiat Currency
By: Dr_Jeff_Lewis
The Chinese financial system, along with the rest of the emerging market, exist as an extension of "the world is flat monetary policy" on a scale never seen before. It is equally a giant leverage play on the last remaining resources for a population that has overproduced its stay.
The financial blog Zerohedge.com recently presented a summary of a BBC program featuring a report from Robert Peston, who traveled to China to investigate how the mighty economic giant could actually be in serious trouble.
Read full article... Read full article...
Saturday, February 15, 2014
Fiat Money - A House Built On Sand / Currencies / Fiat Currency
By: Richard_Mills
Warning, I'm not a licensed financial planner, a broker, an analyst, a geologist nor an economist. And I'm also not, as you so often tell me in your e-mails regarding my articles, an English professor. I'm also not a doom and gloomer nor am I a gold bug.
I'm just an investor who believes precious metals are the only financial safety net worth owning and need to be the cornerstone of any generational wealth building program.
Everyone should own gold and silver bullion in the form of coins and bars.
Read full article... Read full article...
Thursday, February 13, 2014
Myths and Lessons of the Argentine “Currency Crisis” / Currencies / Fiat Currency
By: Joseph_T_Salerno
The crash of the Argentine peso last month brings to a close yet another foredoomed experiment in South American left-wing populism. The precipitous “devaluation” of the peso by 15 percent against the U.S. dollar in January represents its steepest decline since the devaluation of 2001 when Argentina defaulted on its foreign debt. From January 21 to the close of trading on January 23 the peso dropped from 6.88 per dollar to 8.00 on the official market. On the black market the peso fell by 6 percent on January 23 to 13 to the dollar. Over the past year the peso has declined by 35 percent.
Tuesday, January 28, 2014
Prepare for Currency Chaos / Currencies / Fiat Currency
By: Michael_Pento
On November the 25th I published the following warning about the effects from the Fed’s imminent tapering of asset purchases:
“There is a good chance that the beginning of tapering will lead to a reversal of the trade to sell gold ahead of the news. But the major averages have priced in a sustainable recovery on the other side of QE, which will not come to fruition. For the Dow, S&P 500 and NASDAQ the end of QE will be especially painful. A unilateral removal of stimulus on the part of the Fed will send the dollar soaring [especially against emerging market currencies] and risk assets plunging -- you could throw in emerging market equities and any other interest rate sensitive investment on planet earth.”
Read full article... Read full article...
Saturday, December 14, 2013
How the Paper Fiat Money Experiment Will End / Currencies / Fiat Currency
By: Philipp_Bagus
A paper currency system contains the seeds of its own destruction. The temptation for the monopolist money producer to increase the money supply is almost irresistible. In such a system with a constantly increasing money supply and, as a consequence, constantly increasing prices, it does not make much sense to save in cash to purchase assets later. A better strategy, given this senario, is to go into debt to purchase assets and pay back the debts later with a devalued currency. Moreover, it makes sense to purchase assets that can later be pledged as collateral to obtain further bank loans. A paper money system leads to excessive debt.
Monday, December 02, 2013
A Look at Digital Currency in the Global Monetary System / Currencies / Fiat Currency
By: Keith_Hilden
We currently find ourselves in quite the economic quandary. Controlling banking interests are seeking increasingly cashless transaction systems. Various anti-cash legislation actions coupled with a media blitz towards a cashless society acts as supporting material for this shift towards an increasingly digital monetary system. At the same time, a patchwork group of individuals from all walks of life are now using digital currency and payment systems by way of Bitcoin, Paypal, Ripple, and other digital currencies and digital payment systems. While digital currency and payment systems come with their advantages, we see an emerging real concern of account security being compromised in a system of digital currency and payments.
Read full article... Read full article...
Saturday, November 02, 2013
Entire Fiat Money System is Bankrupt: Demise of the Global US Fiat Dollar Reserve Currency / Politics / Fiat Currency
By: Global_Research
Matthias Chang writes: It’s been a while since I last wrote an article on the on-going financial crisis. I don’t write for the sake of writing, as others do because they have to do so, on account of their subscribers who pay hefty subscription fees and demand their money’s worth.
Major issues or trends do not change on a daily or even monthly basis. A trend may take a few years to run its course and unless there is a major factor that may affect the trend, there is hardly any need to comment any further on the trend or outcomes.
Read full article... Read full article...
Wednesday, October 30, 2013
Why Do Governments Devalue Their Currency Rates? / Currencies / Fiat Currency
By: Sahil_Hafeez
Currency Devaluation:
Currency devaluation occurs when a country allows the value of its currency to drop in relation to other currencies.
Why do countries let their currency fall in value?
Almost all the countries of the world have devalued their currencies time to time to achieve certain economic objectives. Following are the main objectives of devaluation:
Saturday, October 26, 2013
Time Out For The PetroDollar Conspiracy / Politics / Fiat Currency
By: Andrew_McKillop
FIRST YOU HAVE TO BELIEVE
I have plenty of articles published on this subject, and I break up the 40-odd years of “the petrodollar system” into at least 3 clear main phases. More important, the present one is the last one. For a valedictory and uncertain, but official argument for the present phase, the US Federal Reserve Bank of NY has a full statement http://www.newyorkfed.org/research/current_issues/ci12-9/ci12-9.html.